J.P. Morgan: Big Tech could borrow $1.7 trillion more
Big Tech companies building AI infrastructure could still borrow up to $1.7 trillion more, according to J.P. Morgan.
Right now, 31 issuers with more than $576 billion in outstanding bonds and over $5 billion in leveraged loans, and with the AI boom showing no signs of slowing down, this borrowing trend is likely to keep growing.
Investor demand pressures AI bonds
Investors are hungry for higher returns as these tech giants issue more AI-related bonds, which is creating some pricing pressure, but it's not because the market can't handle it.
Data-center-backed products have stayed pretty steady compared to corporate AI bonds, showing that prices are just adjusting as demand shifts.
With the bond market less crowded than before, there's still plenty of room for growth as funding strategies evolve.